Results

Dollar General

Dollar General is a leading small box, convenient discount retailer offering a broad selection of merchandise, including consumable, seasonal, apparel and home products, with more than 10,000 stores in 40 states.

Key Environmental Performance Areas:

• Greenhouse Gas Emissions (Facilities)
• Greenhouse Gas Emissions (Fleet)
• Waste Reduction (Facilities)

Greenhouse Gas Emissions (Facilities)

In 2011, as part of the Green Portfolio Program, Dollar General continued measuring energy consumption in its stores, Store Support Center, and distribution centers.

In absolute terms, GHG emissions from these sources have increased 29%, compared to a 2007 baseline, primarily due to an expansion in store operations and a substantial increase in refrigerated and frozen product. Over the same time period, efficiency has improved by 29% (GHGs/carton shipped) at distribution centers, 16% (GHGs/$1000 revenue) at stores, and 23% (GHGs/headcount) at its store support center. These improvements in efficiency have helped Dollar General to avoid almost $70 million in energy costs and more than 479,000 metric tons of GHG emissions since 2007.

Results

Dollar General: Facility GHG Efficiency (2007 Baseline)

Actions

In 2011, Dollar General achieved these results by continuing its implementation of the following practices:

• Installed more than 1,800 energy management systems in existing stores
• Installed additional energy efficient lighting in its retail stores and distribution centers
• Continued to install LED lamps where clusters of high-wattage lamps can be replaced with LEDs
• Adjusted the Building Automation System (BAS) schedule to reduce the length of time the air handlers run when exterior ambient temperature allows this energy saving option
• Consolidated distribution center operating shifts and rationalizing powered mechanization and equipment usage

Future Plans

Throughout 2012 and 2013, Dollar General is continuing to focus on improving its energy efficiency and is considering or actively implementing the following practices:

• Leveraging store energy management systems to develop preventative maintenance programs which may enhance future HVAC system efficiency
• Continuing to explore opportunities to replace lighting with more energy efficient fixtures and lighting technology
• Exploring the procurement of HVAC and other equipment with improved energy usage ratings

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Greenhouse Gas Emissions (Fleet)

In 2011, as part of the Green Portfolio Program, Dollar General continued measuring the efficiency of its distribution fleet. In absolute terms, GHG emissions from the distribution fleet increased 16% compared to a 2007 baseline, primarily due to the addition of retail store locations. Though it does not own its distribution fleet, Dollar General implemented a number of improvements that directly resulted in improved fleet efficiency. Therefore, over the same time period, efficiency improved by 28% (GHGs/1000 carton shipped). These improvements in efficiency have helped Dollar General to avoid approximately $203 million1 of fuel costs and more than 244,000 metric tons of GHG emissions since 2007.

Results

Dollar General: Fleet GHG Efficiency (2007 Baseline)

Actions

Dollar General achieved its 2011 fleet results by implementing the following practices:

• Reduced travel distances between distribution centers and stores through improved routing and distribution center to store assignments
• Collaborated with vendors to refine shipping point assignments, thereby reducing travel distances between supplier and Dollar General distribution centers
• Implemented operational, inventory management, and systemic improvements to increase cartons per load for inbound and outbound shipments

Future Plans

In 2012 and 2013, Dollar General is continuing to focus on improving the efficiency of its fleet and is considering or actively implementing the following practices:

• Adding distribution centers in Bessemer, Alabama and Bethel, Pennsylvania to reduce distances between distribution centers and retail store locations
• Refining which distribution centers service specific stores to reduce delivery travel distances
• Increasing cartons per load (inbound and outbound)

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Waste Reduction

Since 2007, Dollar General has focused on reducing and recycling cardboard waste from its stores and distribution centers. To measure the financial and environmental impacts of its improvements, it measured waste production and recycling rates against a 2007 baseline.

Despite significant growth in store operations, since 2007, Dollar General has reduced its waste production in absolute terms by approximately 72% and has improved its waste efficiency by more than 82% (cubic yards of waste/dollar of revenue). These improvements have helped Dollar General to achieve combined cost avoidance and recycling revenue of an estimated $127 million, to avoid almost 30 million cubic yards of waste, and to recycle approximately 506,000 tons of cardboard since 2007.

Results

Dollar General: Waste Reduction at Facilities (2007 Baseline)

Actions

In 2011, Dollar General achieved these results through the following practices:

• Introduced recycling of store-generated mixed paper (greeting cards and magazines) and distribution center-generated plastic film
• Continued communication programs designed to drive store-level cardboard recycling efforts

Future Plans

In 2012 and 2013, Dollar General is continuing its focus on recycling waste and is considering or actively implementing new programs, including:

• Piloting a recycling program for plastic hangers
• Piloting zero-waste partnerships in select store markets

Dollar General enrolled in the Green Portfolio Program in 2009 and is reporting results for the third time.

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Note: Reported numbers are rounded and may not produce the same results when used to analyze percent changes or total impact.